Highlights from G20, IMF/World Bank meetings in Washington

Sep 24, 2011, 12:16 p.m.

BRAZIL FINANCE MINISTER MANTEGA ON CONFIDENCE IN EUROPEANS Speaking of European officials: "They are strong and they can achieve the measures they are preparing, and I have a trust in what they are planning." Speaking of the European Central Bank: "They have the instruments enough to give the answer to the European crisis."

DIRECTOR OF THE IMF ASIA AND PACIFIC DEPARTMENT ANOOP SINGH:

"The challenge I think is to ensure overheating pressures are addressed. We see in Asia that the credit cycle is in a very advanced stage, even relative to other regions including Latin America. It's very important that this does not result in a decline in credit quality in the coming years." IMF MISSION CHIEF FOR CHINA, HONG KONG SAR NIGEL CHALK:

"We have seen, in some of the larger cities in mainland China and Hong Kong itself, pretty high valuations on property particularly relative to income. That's clearly a risk for financial stability and a risk for macro stability." Keywords: G20/

ECB GOVERNING COUNCIL MEMBER AND CHAIRMAN OF THE FINANCIAL STABILITY BOARD MARIO DRAGHI:

ON DEBT CRISIS

"Relevant governments must play their part, by acting forcefully to strengthen fiscal positions and bolster competitiveness through structural reforms within concrete timetables."

"At the same time, the financial industry must continue to repair and strengthen balance sheets to rebuild resilience to shocks."

BANK OF CANADA GOVERNOR MARK CARNEY, SPEAKING TO CTV TELEVISION:

ON EFSF FIREPOWER

"We've taken the view certainly that looking at what the Americans went through back in 2008/2009, that to get ahead of markets one needs to overwhelm the problem, and to overwhelm the problem one must use overwhelming fiscal power. And it may be that the fund put aside is not sufficient. It depends how it's leveraged, whether it's used as equity or debt. But our point with the Europeans, and others from outside Europe have made the point as well, (is) that they need to overwhelm this issue to get ahead of markets."

ECB GOVERNING COUNCIL MEMBER PATRICK HONOHAN:

ON LEVERAGING EFSF

"If the pot of money put by governments on the table is to be leveraged, that is definitely a separate decision especially if that leverage is to involve a central bank."

"We should not think of leveraging a public pot of funds as a free lunch."

ON USING EFSF TO RECAPITALIZE BANKS

"The idea of injecting capital from the EFSF directly into banks is a very promising idea."

BRITAIN'S FINANCE MINISTER GEORGE OSBORNE:

"In the eurozone, countries need urgently to implement the 21 July agreement, as the first step to resolving the sovereign debt crisis. Credible political commitments will be required in the immediate period ahead. However, it is clear that further action will be needed. The eurozone should follow the remorseless logic of monetary union through progress on institutional reform, greater fiscal integration and coordination of budget policies."

FRENCH FINANCE MINISTER FRANCOIS BAROIN:

ON THE IMF'S SDR

"The internationalization of emerging market currencies is under way ... The Fund should be in a position to support this process, the final stage of which will be the inclusion of these currencies in the SDR basket. We should not disturb this process by adding extra conditions for currencies to join the SDR basket."